In November 1975, the Auditing Standards Committee of the
Canadian Institute of Chartered Accountants issued an exposure draft dealing
with The
Auditor’s Standard Report. This Exposure Draft was the first stage of a
complete updating and revision of the CICA
Handbook Section 5500 - The Auditors’ Report.
According to the exposure draft, “The auditor's report is a
comprehensive subject and the Committee believes that it would be useful and
more efficient to divide present Section 5500 into several separate sections
within the Handbook under such section headings as the following: Section 5400
The Auditor’s Standard Report; Section 5500 The Auditor’s Reporting
Reservations; Section 5600 Special Reports; and Section 5700 Other Reporting
Matters.”
The exposure draft stated that: “The auditor’s standard
report is normally presented in two paragraphs. The first ("scope")
paragraph identifies the financial statements reported on and contains a
reference to the scope and nature of the auditor’s examination. The second
("opinion") paragraph expresses the auditor’s opinion resulting from
that examination.” The major changes proposed in the exposure draft were (a)
revision of the scope paragraph to state that the auditor’s examination was
made in accordance with generally accepted auditing standards; and (b) removal
of the two-part opinion concept.
